The hospital trust was invited to apply for the status when it gained three stars for its performance earlier this year.

Becoming a foundation hospital would give RBH the power to run itself through a governing body, with a majority of members drawn from patients and public, rather than be controlled by Thames Valley Strategic Health Authority.

One of the benefits would be that it was free to borrow money to pursue its own projects.

Chairman of the Royal Berkshire and Battle Hospitals NHS Trust board Colin Maclean announced at a board meeting on Tuesday that a preliminary application had been made.

However he stressed that this was just a first step and the hospital could halt the process if it decided there were more disadvantages than advantages.

He added all hospital trusts in the UK must become foundation hospitals by 2008.

Mr Maclean said: "We are feeling our way at the moment.

"Only a handful of trusts have gained Foundation Status and we are currently finding out from them as much as we can."

The board will carry out a wide consultation before any decision is made.

Moorfields Eye Hospital is "selling its brand a bit like McDonald's" according to Mr Maclean by setting up mini-Moorfields eye units in other hospitals.

Royal Devon and Exeter Hospital NHS Trust was struggling to win cash from the NHS to extend its intensive care unit, but was able to borrow money and go ahead more quickly because of its new freedom as a foundation hospital.

Mr Maclean said: "An extension to intensive care is exactly the sort of thing that we might want to do."

He said the board had agreed to make the

preliminary application when it discovered the next phase of the process was unlikely to take place before next April.